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Income Tax Appellate Tribunal, DELHI “C” BENCH: NEW DELHI
Before: SHRI G.S. PANNU & SHRI KUL BHARAT
This appeal filed by the Revenue for the assessment year 2013-14 is directed against the order of learned CIT(A)-22, New Delhi dated 30.10.2017.
The Revenue has raised following grounds of appeal:-
1. “On the facts and circumstances of the case and in law, Ld.CIT(A) has erred in allowing the claim of Rs.52,51,54,150/- towards deduction under section 10AA of the Income Tax Act.
2. Ld.CIT(A) has erred in not examining the fact whether the assessee is engaged in the business of software export to be eligible for deduction under section 10AA of the Income Tax Act, 1961.”
2. The only effective ground raised by the Revenue in this appeal is on account of deduction u/s 10AA of the Income Tax Act, 1961 (‘the Act’).
Facts giving rise to the present appeal are that the case of the assessee was selected for scrutiny assessment and the assessment u/s 143(3) of the Act was framed vide order dated 12.02.2016. While framing the assessment, the Assessing Officer disallowed the claim of deduction u/s 10AA of the Act amounting to Rs. 52,51,54,150/-. Thereby, he assessed the income at Rs.1,09,59,04,890/- against the returned income of Rs.57,07,50,740/-.
Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who following the earlier year decision, deleted the addition. Now, the Revenue is in appeal before this Tribunal.
Ld.CIT DR relied on the orders of the authorities below.
6. Ld. Counsel for the assessee pointed out that the issue has been decided in favour of the assessee in the earlier years. Ld.CIT DR conceded that the issue in question is covered in favour of the assessee by the decision of Tribunal rendered in the case of assessee pertaining to earlier year.
We have heard Ld. representatives of both the parties and perused the material available on record. Ld.CIT DR could not rebut the fact that deduction was allowed in the earlier years. We find that the Ld. CIT(A) has decided the issue in favour of the assessee by observing as under:-
“I have carefully considered all the facts of the case. In this connection, the Ld. CIT(A)-4, Delhi already decided the issue of allowability of deduction u/s 10AA in the favour of appellant for Asstt. Year 2012-13 and 2014-15 vide in his order dated 31/08/2017 and 25/09/2017.
6.1. As can be seen from Ld. CIT(A) order for assessment year 2012-13 and 2014-15, the above decision was based on decision of the Hon’ble ITAT in the case of appellant on the same issue of allowability of deduction under section 10AA for Assessment year 2007-08 to 2010-11 vide order dated 26th July 2016 in 5830/Del/2011, 1463/Del/2013 and 6144/Del/2013 in which it has been held that the assessee is eligible for the claimed deduction under sec. 10AA of the I T Act, 1961. This decision of Hon’ble Tribunal was upheld by Hon’ble jurisdictional High Court, Delhi in the case of appellant in ITA No. 330/2017 for AY 2010-11 vide order dated 22nd May, 2017.
6.2. I have gone through the submission of the appellant and following the order of the Ld. CIT(A)-4, Delhi for AY 2014-15 on the same issue and keeping in view that issue under consideration is identical for this assessment year (2013- 14), respectfully following the order passed by Hon’ble ITAT, Delhi and confirmed by Jurisdictional Hon’ble High Court as mentioned above, it is held that the assessee is eligible for the claimed deduction under sec.10AA of the Income Tax Act, 1961. The disallowance of Rs.52,51,54,150/- made by the Assessing Officer u/s 10AA is deleted. Therefore, the ground no.1 is decided in favour of the appellant.”
From the above decision, it is clear that the issue has already been decided in favour of the assessee upto stage of the Hon’ble Jurisdictional High Court in for Assessment Year 2010-11 vide order dated 22.05.2017. Therefore, we do not see any reason to interfere in the finding of Ld.CIT(A) and the same is hereby affirmed. The grounds raised by the Revenue are dismissed.
In the result, the appeal of the Revenue is dismissed.
Above decision was pronounced on conclusion of Virtual Hearing in the presence of both the parties on 27th May, 2021.